Life Insurance beneficiary designation and divorce

[shelahp]

What is the name of your state? Minnesota
My soon to be ex husband is concerned that if he leaves me as a beneficiary on his life insurance policy along with our child and his two other children I will be able to contest my percentage. The divorce decree states keeping me as a beneficiary but does not list the percentage or the kids as beneficiary. He is going to change his beneficiary designation percentage for me which I am fine with. Is beneficiary designation contestable? I would not contest it but he seems to be concerned that I would. The policy has been in effect for 5 years.
Does a divorce decree outweigh a beneficiary designation? He wants to cancel the life insurance altogether due to this. This the only thing keeping him from signing our divorce papers.

 

[Dandy Don]

The beneficiary designation is ironclad and can not be changed by anyone.

You or your attorney can advise your ex-husband that he can discuss this matter with the insurance agent who sold him the policy or with the insurance company directly, and they can reassure him that the wife can not change anything. You should negotiate with your ex-husband by offering that he can take your name OFF as a designated beneficiary if he will assign and split the 100% designation among all of your children.

If children are not of adult age at the time the policy pays out, insurance company will require that the money be put into a trust account held at a bank for professional management until they reach adulthood, and you will not be able to get your hands on any of that money.

Is ex-husband going to be paying child support? What is the face value/payout value of the policy?

You need to be deciding whether there will need to be put in the divorce decree any further financial compensation to you or to the kids in the rare or unexpected event that he decides to cancel the policy or can't afford to continue paying the premimums, although I admit that that will probably not happen--if he's been paying premiums for over 5 years that shows he is probably going to continue to be responsible in doing so if he really cares about the kids' welfare.

DANDY DON IN OKLAHOMA ([email protected])